The average price for condos up by 8% year-over-year
As per TREB reports, the average price for condo apartments across the TREB market area was up by 7.8% year-over-year. Whereas the overall average selling price for 2018 was down by 4.3% for all home types.
In our own 6 month review of Square One Condo sales, we too found an 8% growth in prices for July-Dec 2018 vs. July-Dec 2017. You can review the 6 month sales summary of Square One Resale Condos segment in the comprehensive table further down in this post.
Other Home Buying & Selling trends seen in 2018
Overall new listings for sale receded in 2018 after the spike witnessed in 2017. However, despite fewer sales, there was a resumption of a moderate price growth in the second half of the year. But this price growth was strongest for less expensive home types, as many buyers only went after affordable homes.
The condominium apartment segment was the best-performing segment in terms of annual average rates of price growth in 2018. Condos represent an affordable housing option. With a substantial decrease in listings in 2018, competition between buyers remained strong. This supported average price growth well-above the rate of inflation and annual rates of price growth reported for other low rise home types as per TREB officials.
Condos continued to be a key entry point into the GTA home ownership market in 2018. Tighter mortgage made many first-time buyers seek affordable housing options. Looking ahead, there is a growing concern that the lack of affordable housing supply will hamper the ability of potential home buyers to meet their housing needs.
This is despite the fact that many builder new condo projects are due for completion in the next 1-2 years and a record breaking 46 new towers are expected to hit Downtown Mississauga specifically over the next ten years. Continue reading to find out more.
The TREB Market Watch graphs below provide some key insights into the overall condo market performance in the GTA and specifically in the City Centre area of Mississauga for the 4th quarter of 2018.
Builder New Condo Towers Slated for Completion by 2020
5 builder new condo towers that are expected to be ready by 2020 include: Amacon’s Block 9 towers at 4055 and 4085 Parkside Village Dr , which include two towers standing at 25 and 34-storeys tall respectively. Daniels will also add 2 towers to the Downtown core of Mississauga at 360 City Centre Drive by next year. The project features two towers: Wesley which will be 43-storey condo tower with commercial on the ground floor and another 19-storey high rental apartment tower. Grand Mirage is also geared towards completion by 2020.
Other Square One Builder New Condos Under Construction
Another highly popular builder new condo project at Square One is the M City Project. M City Towers 1 and 2 at 61-storeys each, are under construction at 3980 Confederation Parkway.
Edge 1 & 2 Towers, Perla 1 & 2 Condos and Mississauga Square Condos are also currently under construction.
Downtown Mississauga Builder New Pre-construction Condos
The much anticipated 3rd tower of M City – M3, which is the tallest tower to date in Mississauga is still at pre-construction stage. Few units are still available for purchase at M3. Call Team Kalia if you are interested in buying a condo suite at M3.
Kaneff’s Keystone is the latest addition to pre-construction Mississauga condos for sale. Call Team Kalia to find out more and to buy your Keystone condo at VIP terms & prices.
Downtown Mississauga to add 46 New Towers over 10 Years
Over the next 10 years, there could be about 46 new towers or about 25,000 units added to the downtown core of Mississauga. This is as per preliminary discussions and review by the City of Mississauga.
While how many towers actually see the light of the day within the given time-frame is yet to be determined, this expected development int he near future has a lot of significance. The average detached home price in Mississauga for the month of December 2018 was $1,033,209 and the average price of a Mississauga condo apartment was $427,560
Surely $400k+ to buy a condo is not cheap for many newcomers or first time home buyers, especially Gen Y, but it is the only type of home ownership that many can aspire for due to higher prices of detached home segments and tighter lending rules. And even though the price appreciation of Mississauga condos has been much more the price appreciation of detached homes, condos are still relatively more affordable than other low-rise homes, and will continue to be in the near future.
The Future of Square One Condos – Our Views
If you are a regular reader of our Square One market updates, you will agree that our price predictions and market forecasts have been right! Housing market has a lot to do with the government policies (interest rates, land supply, new immigration, foreign buyers tax, income to mortgage approval ratios etc.). Working in the local market we can see these trends like other professionals in their respective fields.